Aug 13, 2009

Dems caused economic meltdown ?

Could it be that the Democrats were the cause of the economic meltdown when they pushed Freddie Mac into the hole. Because Freddie is a trillion dollar industry, the US economy will catch a cold whenever it sneezes.

My sources tell me that during the real estate boom, some bigwig from the legislature phoned the exec(s) there and yelled at him to buy more loans; because, Freddie Mac is a GSE with a mission to make home ownership affordable. That is why it took unprofitable loans . You recall how their officers were grilled at Congress after the debacle and were found blameless.

Freddie has the best risk-assessment models in the secondary mortgage industry and that can be proven. So, it knew that it was going into a slippery slope when it caved in. This direction had been opposed by the other officers and that is documented.Going back to the bigwig who forced Freddie to buy sub-prime loans, is he likely to be a friend of the rich shareholders or the people with bad credits? Why don’t you search the web, but it stands to reason that the one who pushed Freddie in the hole is not from the party that sides with big business.So when somebody goes around blaming “W” and the GOP for the economic mess, I get disappointed. I had hoped that this person would be honest and fair.